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"Ironically in its half-year results on 14 November, Flybe’s auditors said increased demands from credit-card acquirers for upfront cash could lead to the airline ceasing as a going concern"
Independent 15 Nov 2018
Tom Winnifrith & the Share Prophets crew are well known for digging up dirt yet, despite strong warnings against investing in Flybe, they haven't a bad word to say about the BOD or take-over deal.
Wonder why not???
Surely if there were any hope of permits in the foreseeable future this placing would have been delayed until after a rise in the SP??? ...the very fact there is a placing at this time & at this level strongly suggests there is little, if anything, on the horizon???
Time & again you see shareholders talking of taking action to recover their losses from a 'corrupt' BOD.
Can anyone recall any time such action was in any way even remotely successful???
Anyone buying in at over 1p at this stage surely has to be daft!!!
With the sale of Flybe Ltd and Flybe.com Ltd what exactly are people buying shares in if not a worthless shell???
The real question is can Flybe even keep their head above water until the 1p rescue deal goes through???
Suspension pending liquidation has to be a considerable risk here imo
Huge sympathy with anyone recently caught out here, but none with anyone silly enough to be buying now!!!
With the company losing more than £1m per week even if Flybe offered someone £15m to take it over that would only give them 3 months to turn it around and not suffer significant ongoing losses.
I can understand folk who payed 15p'share thinking the offer is low or unfair but the hard truth is that it was not worth 15p/share and it is more than likely the offer of 1p is an accurate reflection of the true value at this point in time.
Sometimes a distressed company is sold for just a pound total so perhaps the offer could even be considered generous???
That would certainly have been the case if they had proceeded with the original offer illbetabuck, however since then they have announced the sale of just Flybe Ltd and Flybe.com Ltd which will not involve the purchase of any shares in the PLC effectively leaving shareholders with nothing as far as I can see.
Am I missing something???
jony5 >> "Finally started to sink in, IT'S BEING SOLD FOR 1P PER SHARE"
Haven't things moved on since then??? ...They were originally advising to accept a rescue deal of 1p/share for the whole company but since then they have announced the sake of Flybe Ltd and Flybe.com Ltd (for which shareholders will get nothing) leaving only a worthless shell company???
If they are now selling Flybe Ltd and Flybe.com Ltd doesn't that mean that shareholders will effectively be left with a worthless shell company and won't even benefit from the previously announced 1p/share offer???
It's very clear that the company is in a very worse state than most imagined... However unfair an offer of 1p might seem it will have been arrived at by a process of due diligence by all parties and is likely an accurate reflection of current value (some distressed companies have sold for £1 total!). Any delay now could wipe the company out completely leaving shareholders with nothing.
Can't understand anyone buying above the 1p offer price at this stage, but for sellers there is at least an opportunity to get out at a significant (currently 100%) premium. But for how long?
GLA
Had shareholders any idea of just how close to going under the company really is then the share price before today would surely have been significantly under a penny and today's good news of a rescue would have caused a rise.
40p?
20p?
10p?
5p?
Dream on!
If they have been running at a £7k/hr loss, as reported by the BBC, Telegraph et al, then it is understandable that they might struggle to find someone willing to take them on even if the company was entirely free... they've done remarkably well to secure any offer at all IMHO
We can be confident that all interested parties did thorough due diligence and the idea that there will be a better offer at this stage seems highly unlikely.
GLA regardless
"taking into account Flybe's current difficult financial position"
"the Acquisition and funding from Connect Airways represent the most realistic means of securing Flybe's future"
This is it - there sadly won't be a better offer IMHO - it's take it or leave it time.
RichKen - Yes, I truly believe that the share price has more than likely peaked!
This has nothing to do with the fundamentals of the company and everything to do with investor behaviour, particularly on AIM stocks... folk pile in where they believe a share will multi-multi-multi bag and inevitably the sp rises for a while, but this can only be sustained as long as there is new money being invested and sooner or later it dries up. Once sentiment falters people get wise to the ramptastic bullsh!t and move on to the next 'guaranteed multi-bagger'... as more and more withdraw their money the SP falls accordingly. The more it falls the more investors leave.
In real life the true value of even an exceptional company very rarely increases by multiples in the space of weeks and the over-inflated greed driven frenzy of a SP bubble is unsustainable... every other share has a bulletin board telling the same story and when you look at SP performance historically you see bubbles which clearly reflect this investor sentiment.
Regardless of the fundamentals and over-excitement of perpetual rainbow chasers this has more than likely run its course imho ...great if you were amongst the lucky few who got in early, but not so great for those 'spiked' at the peak.
I wouldn't be at all surprised to see this sub 20p before summer and possibly even sub 10p by year end.
Like I say - nothing to do with the company & everything to do with AIM investor behaviour... can you honestly say you've never seen a share in decline even when the news is good?
Even if all the cute little ducklings are obediently getting in line it won't do them much good when mother duck drunkenly leads them over a hundred-foot waterfall.... still, they can at least scream "Newmont, Newmont, Newmont" as they plunge to their deaths.
The biggest worry for investors at this stage is surely the lack of Nomad... I fear they might struggle to find a replacement who is willing to take this position of responsibility as things stand and the company have little more than 20 working days to secure it.
Very unwelcome development imho :-(
Hope folk are able to switch off & forget over Christmas
Best wishes to all
People make the mistake of assuming there's a 50/50 chance on the roulette wheel but are overlooking green (which subtly reduces the odds either way)... only thing for certain is that the odds are stacked against & the casino always wins.
GLA
I've got a few words for Mapp
Don't listen to bulletin-board cr@p
Just make up your mind
Who's cruel & who's kind
In between taking your nap
xx
"Cannot see how judgement from the court can take long & obviously in Frr's favour."
How obviously???
The only thing obvious is that investors clearly want it to go in FRR's favour but the fact is that those backed into a corner often take preemptive legal action in a desperate attempt to give themselves the upper hand... Not suggesting this is the case here but in all honesty it's as clear as mud!
Also, is it not often the case that those with the deepest pockets win disputes???
Hopefully, but not obviously imho, there won't be bad news.
No news is good news???